Moody’s Downgrades Senegal’s Sovereign Rating Again

Moody’s downgraded Senegal’s foreign-currency sovereign rating from Caa2 to Ca, its fifth consecutive downgrade. The agency estimates that foreign private lenders could lose between 35% and 65% in a public-debt treatment, but this remains a projection rather than a finalized agreement. Debt negotiations with creditors are ongoing, while Moody’s kept the local-currency rating at Caa2 and short-term ratings at Not-Prime. The outlook shifted from negative to stable, with the agency citing Senegal’s membership in the West African Economic and Monetary Union and access to the regional market as factors limiting some risks.